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MediaBay Announces Digital Media Distribution Strategy

9/14/04

Company Aggressively Digitizing its Content Catalog
for Global Digital Distribution

CEDAR KNOLLS, N.J., /PRNewswire-FirstCall/ -- MediaBay (Nasdaq: MBAY), a leading spoken audio media and marketing company, today announced its digital media distribution strategy.

The Company has begun digitizing and encoding its nearly 75,000 hour library of spoken word content that includes 25,000 hours of audio books and 50,000 hours of famous Old Time Radio shows, including The Shadow, Amos and Andy, Jack Benny, The Lone Ranger, Gunsmoke and more. Once the content is digitized, the Company expects to make it available for download on the many evolving music services and content stores that are proliferating on the Internet, as well as through its own websites at http://www.audiobookclub.com and http://www.radioclassics.com.

MediaBay CEO Jeffrey Dittus stated, "In digitizing our content, we are preserving the history of American Radio and making it available to a whole new generation of listeners. Combined with the power of our nationally syndicated old time radio show, which airs on 240 stations across the United States and our existing partnerships with XM and SIRIUS satellite radio, we believe we are also building a compelling digitally based cross-promotional vehicle for advertising. We intend for our audience to cross the chasm between the generations, from those whose families grew up listening to our programming, to the new generation, who gets their media on the Internet.

"As our strategy relates to our audiobook business, research conducted by the Audio Publishers Association shows that 70% of audiobook users listen to them in their cars or on portable devices. By making our content available to the digital customer, we believe the market for our audio content could expand and we may be able to significantly reduce the cost of delivery. We believe this distribution strategy could lead to increased revenues and potentially put the Company on a track to profitability."

MediaBay believes its potential digital distribution partners could reach users of personal computers and digital hand held devices, such as windows media enabled PC's, CD burners for personal use, cell phones, and a growing number of other lifestyle devices similar to the Apple iPod.

Ensuring that the Company's content is protected from piracy is critical to this strategy, so MediaBay intends to work with established rights management platforms, including the new Microsoft digital rights management system. The Company believes that by working with partners that have open systems, and not developing its own proprietary system, a broader audience of listeners could be reached as the market matures.

More than 550 million cell phones were sold last year, and the convergence of the PDA, cell phone and MP3 player is now a reality. As these devices are enabled with rights management software to protect branded content, coupled with hard drives to store downloads, the usage and listening hours for MediaBay's audiobook and old time radio library is expected to increase significantly. The Company believes that the availability of MediaBay's content in digital channels should give consumers new and easier access to the great entertainers of the past, many of which, are still adored today and are being shared across generational lines.

MediaBay, Inc. (Nasdaq: MBAY) is a multi-channel, media marketing company specializing in the $800 million audiobook industry and old-time radio program distribution. MediaBay's industry-leading content library contains more than 75,000 hours of spoken audio content including over 50,000 hours of classic radio programming, 3,500 film and television programs and thousands of audiobooks. MediaBay distributes content through more than 20 million direct mail catalogs; streaming and downloadable audio over the Internet; over 7,000 retail outlets; a 240 station syndicated radio show and 24 hour Classic Radio channels on XM and Sirius satellite radio. For more information on MediaBay, please visit http://www.MediaBay.com or its subsidiary sites:
http://audiobookclub.com, http://radiospirits.com, and http://radioclassics.com.

Certain statements in this press release constitute "forward-looking" statements that involve a number of known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any results, performances or achievements express or implied by such forward-looking statements. These risks and uncertainties, include, but are not limited to, the Company's history of losses; the Company's ability to anticipate and respond to changing customer preferences, license and produce desirable content, fund and execute successful marketing campaigns, protect its databases and other intellectual property from unauthorized access, pay its trade creditor and collect receivables; dependence on third-party providers, suppliers and distribution channels; competition; the costs and success of its marketing strategies; product returns; member attrition and other risks detailed in the Company's Securities and Exchange Commission filings. Undue reference should not be placed on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update any forward-looking statements.

Contacts:

Jeffrey Dittus,
Chief Executive Officer
MediaBay, Inc.
T: 973-539-9528
E: j.dittus@mbayinc.com

Rachel Levine, Investor Relations
The Anne McBride Co.
T: 212-983-1702 x207
E: rlevine@annemcbride.com

 

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